Continue Reading Below
The company will also stop using its refrigerated distribution network at the end of the month, according to a company statement emailed to FOX Business.
As a result, Coca-Cola will be cutting about 300 jobs, a spokesperson said.
“This decision was not made lightly and comes at a time when it is more important than ever to evaluate where we can improve efficiencies in our business and operations,” the company statement said.
The Wall Street Journal first reported Coca-Cola’s decision to discontinue the brand.
“As a pioneer in what is now referred to as the Natural Health Beverages category, the Odwalla brand has been supported for decades by countless team members, informally known as ‘Odwallians,’ and external stakeholders, whose dedication and service made the brand possible,” Coca-Cola said in its statement.
“We remain committed to fostering the legacy and entrepreneurial spirit left behind by the Odwalla brand and will continue to strive to stay a step ahead of tomorrow’s thirsts and the ever-changing needs of our consumers,” the company added.
According to The Journal, Coca-Cola had been assessing Odwalla’s performance for “several years,” but the brand just wasn’t cost-effective.
“It really is the result of consumers changing what they want so rapidly,” a spokesperson told The Journal. “By freeing up those assets, we can reinvest those costs in what consumers want today.”
Coca-Cola purchased Odwalla in 2001 for $181 million, The Journal reported. With the brand, Coca-Cola also assumed about $5 million in debt, according to the newspaper.